Postnord
Table of content
Chapter 1: Introduction and purpose
Introduction
In this chapter you are expected to present the organization you are investigating
In this assignment we will be studying PostNord which is a leading company in
of communications and logistics solutions in the Nordic region. PostNord is a state-owned
company which was founded on 24th July 2009 when Post Danmark A/S and the swedish
company Posten AB joined together. As a result, the Denmark state holds 40 percent of the
shareholding while the Sweden state holds 60 percent of the shareholding. However, the
voting rights are divided evenly as 50/50. Furthermore, PostNord is Sweden’s second largest
company after Volvo cars. In the beginning the name of the company was called Posten
Norden but on 17th May 2011 the group decided to change the name to PostNord AB. The
headquarters of the parent company is located in Solna, Sweden. Håkan Eriksson is the leader
and CEO of PostNord AB.
Ett stycke för företagets vision…..
● Här kan vi nämna företagets vision, mission, värderingar och syfte.
As PostNord mentions (2020), their mission is connecting people and businesses reliably,
efficiently and on time. PostNord describes that they delivers world-class communication and
logistics
Ett stycke om ….
● Presentera siffror från 2020 angående deras verksamhet
● Skriva lite om hur stor postnord är i varje land.
● Nämna lite om hur e-commerce har påverkat deras verksamhet. T.ex. hur såg det ut
innan och efter.
● En av nordens största arbetsgivare. Andel kvinnor i chefspositioner är 32%.
https://www.postnord.com/siteassets/documents/about-us/postnord_foretagspresent
ation_2020_final_en.pdf
https://www.postnord.com/siteassets/documents/about-us/postnord_foretagspresent
ation_2020_final_se.pdf
Purpose:
This study aims to build up a strategic plan for PostNord, where the target is to accumulate
our knowledge about how the theoretical content in the academic literature can be used in
reality. Some examples of theories from the course are SWOT-analysis and VRIO etc. Our
study will be divided into three steps. Firstly we will be analysing the current situation of the
organisation, secondly we will be developing a strategy and lastly we will be planning to go
through the strategy that shall be used.
In this project work we have chosen to delimitate our study within the company's operations
in Sweden. As we mentioned before in the introduction, Postnord is an organization that
exists in several markets such as in Finland, Norway and Denmark. Because of this, we
choose to focus on the Swedish market as we are in Sweden and have knowledge and
experience as customers.
In this paper, we will also mention the percentage of the total carbon dioxide emissions and
the main focus will be on road transport which causes 92% of the total emissions (PostNord,
2020).
Chapter 2 Methodology
The analyzes have been based on theories and the information we analysed regarding
PostNord are mainly collected from the PostNord website. This is because we believe that
this is the most relevant information we can find about the company. To strengthen the study
we will be interviewing PostNord workers, and we will be questioning the work process, how
they feel about working for PostNord, and taking their opinion on what weaknesses Postnord
has.
We could have had a broader view of PostNord's way of conducting their business if we had
used other sources, for example by comparing with other companies. However, our main
focus will be investigating PostNord and not comparing it with other companies, because the
comparison will need much more analysing .
Finally, we have chosen to focus our analysis on the PostNord Swedish market mainly, in
order to find correct and relevant information that also contributes to a clearer and deeper
understanding.
Chapter 3: Analysis of the current situation
In this chapter we are going to discuss the current situation in Postnord. To accomplish
deeper understanding, we will be analysing PostNord with different tools as SWOT-analysis,
and PESTEL.
SWOT-analys
SWOT is a strategic planning which provides a summary of the strengths, weaknesses in an
analysis of capabilities and resources. Opportunities and threats are seeked in analysis of the
environment (Pearson, 2018).
Strength
PostNord has a strong market position, as PostNord presented their e-commerce in the Nordic
region in 2019 had a value of 245 billion SEK (PostNord, 2020).
Leading the e-commerce service in the Nordic region, gives PostNord better market
Positioning. Moreover PostNord has one of the largest number of employers, in Sweden
alone PostNord has 19,054 which illustrates how big postal company PostNord is (PostNord,
2020).
As mentioned PostNord is a state owned company,
Weaknesses
postnord does not deliver items on the weekends, which means that the item takes longer to
be delivered.
Threat
PostNord is in an industry where there is an intense competition between different postal
companies as DHL express, and DB Schenker. These companies compete with each other by
offering cheaper prices, and faster deliveries. This intense competition will lead to lower
prices and will lower postnord's revenues.
Opportunity
PostNord has many strategies to increase their growth, and in 2019 PostNord invested in
solar cells because the company believes that solar cells are the future (PostNord, 2020).
PostNord also has a truck fleet with 90s battery powered vehicles, that's why they believe in
investing in sustainable energy (PostNord, 2020).
Furthermore, PostNord invested in 3D technology and the reason for investing is that 3D
technology will be able to help PostNord reduce the need for warehouses, and the new 3D
printer will avoid unnecessary overproduction and manufacture the product when needed
(PostNord, 2020).
Strength
● Strong market positioning,
● large number of employees
● State Owned company
Opportunity
● Solar cells and 3D technology
investment
● Delivery in weekends and evenings
24/7
● digitization (faster delivery)
● leads to better usage of employees
ex. delivery 24/7
SWOT-analysis
pestel analys:
Weaknesses
●
●
●
●
Slow delivery
Goods disappear
incompetent employees (?)
bad reputation among customers in
trustpilot
Threat
● Intense industry
There are 6 factors in PESTEL framework. The letter P represent for politics, E economic, S
social, T technology, E ecological and the last factor is L legal.
The political factor consists of laws, regulations, tax system rules and other politically
controlled restrictions that affect and organizations the conditions to be successful in the
markets in which it operates. Postnord is a state-owned company, which Sweden owns 60
percent of the company.
economic situation can affect the macro-environment for example, interest rate, exchange rate
and the impact of world economic growth. It is important that companies understand how
economic prosperity affects everyone markets. Postnord receives its financial support from
the countries that own the company and the customers for whom they work. the company
faxes very fast and has a global goal in the future. the company is already have SEK 3.7
billion, which shows how rich the company is.
Within the overall economic growth rate, social elements of the macro-environment can
influence both the specific nature of demand.
Postnord plays an important role for business and society. They have a long-term stable place
in the market and profitable business that cares about the environment and is conducted with
a social responsibility.
There are many people who are dissatisfied with how they handle the mail. they sent letters
or would get product that they bought but unfortunately did not get the stuff so many people
have bad experience with Postnord.
The ecological factor contains many factors that affect both the present and the future
ecological environment. Nowadays consumers became more aware of the environmental
impact of what they consume, and many entrepreneurs are also aware. Postnord’s goal is to
minimize 40 percent of CO2 emissions by 2020. They already minimized 36 percent of CO2
emissions from year 2009. In e-commerce, packages are 30 percent air which Postnord works
on how it would be smaller to minimize unnecessary transport which affects the environment.
One of the most important factors of the Marko-environment is technology. technology is, for
example, interned. Interned can provide a lot of opportunities for companies to grow at the
same time can be a threat to entrepreneurs because it will be easy to shop almost anywhere in
the world today. In recent years, e-commerce has increased by about 15 percent per year. If it
continues the same as it is right now, Postnord will need three times as many transports,
drivers, terminals and three times as much capacity at the agents. Which is good for the labor
market and the company itself.
Chapter 4: Objectives and strategies
Generic Competitive Strategies
Generic strategies have been introduced by Michael Porter. They present the basic types of
competitive strategies that cover many parts of business situations and help to achieve
competitive advantage. So competitive strategy is about how a company can achieve
competitive advantages within its business area. In turn, competitive advantages are how a
company can create value which is higher than the costs of supplying them and superior to
that of competitors. Thus, competitive advantages have the task of supporting competition
strategies (Johnson et al., 2018).
There are four different types of competitive strategies which companies can use to have
competitive advantage. The four competitive strategies are cost leadership strategy,
differentiation strategy, and focus strategy. Cost leadership strategy is a strategy that
companies use to compete in their business area by having the lowest price. To be able to
fulfil this strategy, companies must pay attention to these four key cost drivers:
● Lower input costs
● Economies of scale
● Experience
● Product/process design.
Differentiation strategy is devoloping and increasing the competitive advantage by offering
something unique to the customers which their competitors do not have. There are three key
drivers to reflect on when it comes to this strategy: Product and service attributes, that
provide customers with distinctive features compared to other competitors, this is a possible
way to differentiate by product and/or services. The company can also differentiate by having
good relationships with its customers. This can, for example, be achieved through good
customer service. Another way that you can also differentiate with is through complements.
When products are consumed together, they may have increased value (Johnson et al., 2018).
Hybrid strategy is a combination of the different generic strategies as leadership,
differentiation and focus. Managers should choose which generic strategy they need to follow
and stick to it, otherwise it could be risky to end up with no strategy and this is what Porter
argues for. That's the idea behind hybrid strategy to combine the different generic strategies
(Johnson et al., 2018).
The generic strategy that Porter launched is focus strategy. This strategy is about focusing on
a specific segment in the market and then adapting its products/services to the needs of the
chosen segment. Focus strategy is divided into two variants: cost-focus strategy and
differentiation focus strategy. The basis for cost focus is to identify areas where broader
cost-based strategies fail and to instead focus on a smaller part of the market. On the other
hand, differentiation focusers want to meet needs of customers who express specific
requirements for product quality and attributes and that broader differentiation could not
cover. Distinct segment needs, distinct segment value chains and viable segment economics
are three key factors that are important for the success of focus strategy. (Johnson et al.,
2018).
PostNord can differentiate their services to develop and digitize the work process, to increase
the accuracy and minimise the disappearance of goods, increase the capacity and maximise
efficiency. Moreover the company can differentiate itself by delivering parcels during
weekends, which can be a competitive advantage and attract both existing and new
customers.
Corporate Strategy directions:
Ansoff's model is a product and market expansion model for growth strategies , which is a
classic model framework that generates four different organisational growth to attract and
reach more stakeholders. The model is based on either investing in the products/markets it is
already in or expanding the market share and/or products (Johnson et al., 2018).
The first zone called market penetration, is about attracting more customers in the existing
market by setting low prices. Secondly in Ansoff's axes, we have product development which
presents new products and services in existing markets. Going further to the next zone,
market development, is a new market expanding with the same products and services. Lastly,
conglomerate diversification means growth in a new market with completely new products
and services (Johnson et al., 2018).
https://expertprogrammanagement.com/2011/06/the-ansoff-matrix/
As mentioned, there is intense competition between the different postal companies, and for
PostNord developing new services in the existing market will be the best choice for the
company to grow. The reason behind focusing on developing a new service is because it
targets the same customers and uses the same channel of distribution. The idea is that
PostNord starts distributing on weekends, which is a new service that will give the company
the opportunity to charge more. This leads to customers receiving their parcels faster and less
delays.
Conclusion:
Our purpose with this project work was to build a strategic plan for one of Sweden's largest
companies, PostNord. We started the project work by analyzing the company current
situation. Through the PESTEL factors we were able to analyze the macro-environment,
while we examined the industry in which PostNord operates through Porter's five forces
framework. We have also highlighted the most important stakeholders for the company and
talked about how the resources and capabilities are valuable, rare, inimitable and supported
by PostNord.
Using these analyzes and factors, we were able to identify that the company's strengths are
its strong market position and the large number of employees. Weaknesses areslow
delivering, goods disappearing, incompetent empolyees and having a bad reputation among
coustmers. The company's opportunities consist of deliveries on weekends and increased
e-commerce while threats come from the intense industry.
Our second step in the work was to develop a strategy that helps us deal with the
problems/opportunities that we have emerged. When it comes to Ansoff's model about
organizational growth, we have chosen to focus on the development of new services where
PostNord can start delivering on the weekends. The goal is to deliver to the customers faster
and avoid delays. To achieve competitive advantages, we have chosen the differentiation
strategy which can be achieved e.g. by delivering on weekends and by digitizing the work
process.
Finally, after analyzing the current situation and developing different strategies of PostNord,
we would plan how to implement these strategies. We choose to combine multidivisional
structure and strategic change through evolution in order to best implement our strategies .
Using multidivisional structure helps PostNord to train and monitor employees despite the
high cost involved. By evolution, PostNord can get the transformational change we think they
need. Combining organizational structure and evolution helps the company to be innovative
and puts more focus on encouraging new ideas in services. That will definitely give them an
advantage in the industry.
References
https://www.postnord.com/siteassets/documents/about-us/postnord_foretagspresentation_202
0_final_en.pdf
https://www.postnord.se/om-oss/pressmeddelanden/2019/postnord-investerar-i-solceller
https://www.postnord.se/om-oss/pressmeddelanden/2020/postnord-investerar-ytterligare-i-3dprinting
Book
Johnson, G.,Whittington, R., Scholes, K., Angwin, D., and Regner, P. 2018. Fundamentals Of
Strategy Whittington, G and more (2018)
PostNord. (23 September 2020a). Company presentation.
https://www.postnord.com/siteassets/documents/about-us/postnord_foretagspresentatio
n_2020_final_en.pdf
PostNord. (n.d.b). Vad gör PostNord med anledning av covid-19?
https://www.postnord.se/om-oss/vad-gor-postnord-med-anledning-av-covid-19
PostNord. (n.d.c). Våra verktyg: Appar. https://www.postnord.se/vara-verktyg
PostNord. (n.d.d). Serviceställen.
https://www.postnord.se/om-oss/samhalle/servicestallen
PostNord. (2020-09-23). Förpackningsresan – mot en mer klimatsmart e-handel.
https://www.postnord.se/vara-losningar/artiklar/hallbarhet/forpackningsresan
PostNord. (2019-02-21). Annual and Sustainability Report 2018: Important events and
results 2018.
https://www.postnord.com/contentassets/e5df70f2ca0a40f49a120bff3765a7d3/wkr0006.p
df
PostNord. (2019-01-25). PostNord investerar i solceller.
https://www.postnord.se/om-oss/pressmeddelanden/2019/postnord-investerar-i-solceller
PostNord. (2020-01-16). PostNord investerar ytterligare i 3D-printing.
https://www.postnord.se/om-oss/pressmeddelanden/2020/postnord-investerar-ytterligare
-i-3d-printing
PostNord. (2020-09-23). PostNord på din webb.
https://www.postnord.se/vara-losningar/e-handel/postnord-pa-din-webbplats
Presentationen av steg 1
Hello, today we will be talking about PostNord. My name is ….
Introduction (Musab)
In this assignment we will be studying PostNord which is a supplier of communications and
logistics solutions in the Nordic region (PostNord, 2020). PostNord is a state owned company
which was founded on 24th July 2009 when Post Denmark A/S and the Swedish company
Posten AB joined forces together (PostNord, 2020). As a result, the Danish state holds 40
percent of the shareholding while the Swedish state holds 60 percent of the shareholding.
However, the voting rights are divided evenly as 50/50.
Stakeholders (Naif)
Stakeholders are parties who have interest in an organization and the outcomes of their
business operations and performance. Both parties are dependent on each other to achieve
their goals while they can influence or be influenced by each other's actions. The five groups
of stakeholders are:
• Economic stakeholders
• Social/political stakeholders
• Technological stakeholders
• Community stakeholders
• Internal stakeholders.
The economic stakeholders for example consist of customers, owners (investors) and
suppliers. The company has high demands on delivering to its customers on time, safely and
efficiently. In addition, the company procures billions of goods and services worth billions
annually from its suppliers.
Examples of some stakeholders that are part of the social/political type are government
agencies, policymakers and local councils. Considering the pandemic that exits in the world
right now, the company follows the authorities' recommendations to reduce the spread of
infection. Some examples of measures that have been taken are digital meetings and that the
drivers no longer receive receipts on their personal digital assistants. The company's ability to
deliver mail and letters is also affected by the restrictions imposed by political stakeholders
due to the pandemic.
Standards agencies, key adopters and ecosystem members supplying complementary
products/services such as applications for mobile phones are some examples of the
technological stakeholders. We can already see the relationship between ecosystem members
and PostNord as you can download three different apps that are related to the company via
Google Play or Apple Store. The applications are Riktiga Vykort app, which helps the
customers to send a personal photo as a postcard from their smartphone to the recipient's
mailbox. PostNord App which has many functions, e.g. to help track letters and packages.
And PostNord Skicka – Google Assistant which is a voice service that makes it easier to find
out which shipping option suits you best.
Community stakeholders are a major group in the wider society that usually has no direct
relation to the organization. In its company presentation, PostNord mentions that they play a
major role in their community by conducting a long-term stable and profitable business that
strengthens competitiveness at the same time as society's expectations are fulfilled.
The last type of stakeholders that we will discuss are the internal stakeholders. Employees,
local offices and business centers are few examples of these primary stakeholders. In
PostNord, the number of employees is almost 29, 000 and the company is considered one of
the Nordic region's largest employers. They thus have a great social responsibility and strive
to be an attractive and pleasant workplace. Business centers are also important for PostNord
because it’s there where parts of the work take place.
SWOT-analysis (Musab)
Strength
PostNord has a strong market position, as PostNord presented their e-commerce in the Nordic
region in 2019 had a value of 245 billion SEK.
Leading the e-commerce service in the Nordic region, gives PostNord better market
Positioning. Moreover, PostNord has one of the largest number of employers, in Sweden
alone PostNord has 19,054 employees which illustrates how big postal company PostNord is.
Weaknesses
PostNord does not deliver items on the weekends, which means that the item takes longer to
be delivered.
also Letters do not arrive, or goes to the wrong person
Threat
PostNord is in an industry where there is an intense competition between different postal
companies as DHL express, and DB Schenker. These companies compete with each other by
offering cheaper prices, and faster deliveries. This intense competition will lead to lower
prices and will lower PostNord's revenues.
Opportunity
PostNord has many strategies to increase their growth, and in 2019 PostNord invested in
solar cells because the company believes that solar cells are the future. PostNord also has a
truck fleet with 90s battery powered vehicles, that's why they believe in investing in
sustainable energy.
Furthermore, PostNord invested in 3D technology and the reason for investing is that 3D
technology will be able to help PostNord reduce the need for warehouses, and the new 3D
printer will avoid unnecessary overproduction and manufacture the product when needed.
Strength
Weaknesses
Strong market positioning, large number of
employees
Slow delivery
Opportunity
Threat
Solar cells and 3D technology investment
Intense
industry
PESTEL-analysis (Mohamed)
In PESTEL analysis there are 6 factors in PESTEL framework
1. Politic
PostNord is a state-owned company as mentioned, in which Sweden owns 60 percent
of the company and Danmarka owns 40 percent.
2. Economic
PostNord receives its financial support from the countries that own the company and
the customers for whom they work. the company faxes very fast and has a global goal
in the future. the company had a revenue of 3.7 billion swedish krona in 2018.
3. Social.
PostNord plays an important role for business and society. They have a long-term
stable place in the market and profitable business that cares about the environment
and is conducted with a social responsibility. There are many people who are
dissatisfied with how they handle the mail. they sent letters or would get products that
they bought but unfortunately did not get the stuff so many people have bad
experience with PostNord, this is our opinion.
4. Technology.
. In recent years, e-commerce has increased by about 15 percent per year. If it
continues the same as it is right now, PostNord will need three times as many
transports, drivers, terminals and three times as much capacity at the agents. Which is
good for the labor market and the company itself.
5. Ecological.
PostNord’s goal is to minimize 40 percent of CO2 emissions by 2020. They already
minimized 36 percent of CO2 emissions from 2009. In e-commerce, packages are 30
percent air which PostNord works on how it would be smaller to minimize
unnecessary transport which affects the environment.
6. Legal.
PostNord is a government-owned company, which can be a positive for the company,
as the government can impose more taxes or regulate for foreign competitors.
Kommentarer:
● The stakeholders and PESTEL before SWOT-analysis.
● Vi saknar VRIO och Porters Five force framework.
●
SWOT-analysis ska inte ha strategier i möjligheter. Detta ska tas med i nästa steg.